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Optimization of Production and Profit Maximization

The document outlines various optimization problems in production and distribution across different industries, including soft drink production, fertilizer manufacturing, transportation logistics, integer programming for backpack selection, and refinery blending for petrol. Each problem specifies constraints and profit margins, aiming to determine optimal production schedules or distributions to maximize profits. The document serves as a framework for formulating and solving these optimization challenges.

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shikharshukla145
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8 views4 pages

Optimization of Production and Profit Maximization

The document outlines various optimization problems in production and distribution across different industries, including soft drink production, fertilizer manufacturing, transportation logistics, integer programming for backpack selection, and refinery blending for petrol. Each problem specifies constraints and profit margins, aiming to determine optimal production schedules or distributions to maximize profits. The document serves as a framework for formulating and solving these optimization challenges.

Uploaded by

shikharshukla145
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

OPTIMIZATION PROBLEM FORMULATION

1. Product Mixture:
A food company decides to produce 2 new soft drinks , Drink 1 and Drink 2. The
company has 3 plants.

Production time needed for each unit Produced


Plant Drink 1 Drink 2 Availability/week
1 1 hour 0 hour 4 hours
2 0 hour 2 hours 12 hours
3 3 hours 2 hours 18 hours

The unit profit for drink 1 is Rs. 3, and unit profit for drink 2 is Rs. 5. How many
units of each item should be produced weekly to maximize the profit?

2. A fertilizer manufacturing company produces two types of fertilizer:


Type A: having high phosphorus content
Type B: having low phosphorous content

Tons required per ton of fertilizer Maximum


availability per day,
tons
Raw material Type A Type B
Urea 2 1 3000
Potash 1 1 2400
Rock Phosphate 1 0 1000

Net profit per ton 30 20

What should be the daily production schedule ( tons of A and B produced) to


maximize the profit?
3. The Transportation Problem:
In this problem we wish to find the minimum cost distribution of a given commodity
from a group ( i= 1,2,3……m) of supply centres(sources) to a group (j=1,2,3…..n) of
receiving centres(destination).
Each source has a supply(si ).
Each destination has a demand(dj).
The cost of shipping from a source to destination is directly proportional to the
number of units shipped.

Simple transport network representation

Problem:
4. Integer programming problem

How will you select a set of items to put in your backpack so that you can maximize
the values of the item selected while respecting a constraint, on maximum carrying
capacity of your body?

5. Refinery Blending Problem:


A Refinery blends 4 types of crudes to make 2 versions of petrol, Regular and
premium. The following table depicts the crude specifications

Table 1.
Octane rating Cost($/barrel) Availability
daily (barrel)
Raw crude 1 86 17.00 20000
oil 2 88 18.00 15000
3 92 20.50 15000
4 96 23 10000

Table 2.
Octane Price($/barrel) Maximum
daily demand
Petrol Regular 89 19.50 35000
Premium 93 22.00 23000

How much of premium petrol and how much of regular petrol should be produced to
maximize the profit?
6. Optimization of Shell and tube heat exchanger:

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